CPG spending by Boomers (born 1946 to 1964) and Seniors (born 1925-1945) grew at a faster rate than the total market last year and will again this year, details IRI in a new report. The study finds that these Americans will account for 52% of total CPG spending this year, or roughly $207 billion of the $398 billion in total market spending. By 2020, annual CPG spending is expected to exceed $230 billion for these consumers, whose brand decision influencers differ from the rest of the population.
According to Q1 2014 survey data contained in the report, the 55+ population is far less likely than the average adult to have its brand decisions influenced by a variety of online touch points. For example, they’re more than 50% less likely to count smartphone apps and mobile advertising as an influencer of their brand decisions, and 44% less likely to see online ads as an influencer.
There’s more parity when it comes to offline brand influencers, with the 55+ crowd slightly more apt to be influenced by newspaper circulars from home, and almost as likely to be influenced by product labels and packaging, in-store circulars and coupons from home.
The findings come on the heels of a new MarketingCharts Debrief, “Advertising to Baby Boomers: The Why and How” [download page]. The Debrief explores Baby Boomers’ receptiveness to advertising, revealing the channels that are most likely to reach and influence them, and how those differ from Millennials and the typical adult. The Debrief also examines Baby Boomers’ outsized share of discretionary spending and reveals the categories in which they allocate the greatest amount of their discretionary dollars.
The IRI study also sheds some light on the CPG categories that are likely to see increased spending in the years to come, as Boomers and Seniors age. Chief among those is healthcare: while younger Boomers (born 1956 to 1964) will spend 5.4% of their CPG dollars on non-prescription healthcare products this year, that figure increases to 6.8% among older Boomers (born 1946 to 1955) and to 8% among Seniors. Older Boomers and Seniors also over-index in private label spending on healthcare products by a considerable margin, per the report.
Currently, Sam’s Club and Winn Dixie are among the top retailers for both Younger and Older Boomers, while Walgreens and Publix are among the top 5 for both Older Boomers and Seniors.
About the Data: CPG spending growth data is based on IRI Consumer Network 52 weeks ended 2/9/14 and same period prior years.